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March 1, 2023
Difference Between Fair Market Value and Appraised Value
Appraised value and fair market value both have the role of determining how much a property is worth. An appraised value is an expert’s objective opinion on what a house is worth, while the fair market value is what it should sell for in an open market. In theory, the values should be in the same ballpark. But this isn’t always the case.
Let’s learn more about appraised value vs fair market value so that you can understand the differences. This will help you determine if you should list your home for sale, or if you should wait a little longer.
What is Fair Market Value? How is it Determined?
Fair market value (FMV) is an estimate of what a home will cost if it sells on the open market. This value helps determine a listing price for your home. FMV is driven by market conditions in addition to your home’s value. This means that your FMV can change significantly in a short amount of time based on your local housing market.
Typically, the FMV for a home is determined by a real estate agent when they do a comparative market analysis (CMA). A CMA looks at homes in your area that are similar to yours and located in similar neighborhoods. CMAs provide an accurate estimate because they are based on real-time data.
That being said, CMAs are only as accurate as your comps. If you’re selling a home in Washington DC where there are lots of homes similar to yours, you have a lot of data to work with. On the other hand, if you have a home in a rural area or with unique features, your CMA may not be as specific.
What is the Appraised Value?
The appraised value of a home is determined by a licensed, third-party appraiser. This expert assesses the home and looks at comparable properties. They then provide a more personalized, objective estimate of what your home is worth.
An appraised home value is generally used during escrow by the buyer’s lender to make sure the home is worth the price. This ensures that lenders don’t give out loans that are worth more than the home itself. If the appraisal comes out lower than what the buyer is financing, they may not get financing, or they’ll have to make up the difference.
Sellers may also choose to have an appraisal done before listing their home to get an idea of how much it’s worth. Some of the things a home appraiser will look at are:
- Overall condition
- Square footage
- Layout and functionality
- Garage and driveway
- Plumbing, electrical and HVAC systems
- Walls, floors and appliances
- Energy efficiency
- Home’s exterior
- Foundation and basement
- Neighborhood
Which Number is Most Important?
As you can see, the fair market value and appraised value of your home should be similar. FMV is based on comparisons and used by sellers and agents to set a listing price, while an appraised value is more personalized and used by lenders to underwrite financing.
No value is more important than the other. It all depends on whether you’re the buyer or the seller. If you plan to sell your Washington DC house, you’ll be more interested in your home’s FMV. If you plan to buy a house, the appraised value is more important.
Find Out How Much We’ll Pay for Your Home!
4 Brothers Buy Houses is a house buying company that buys properties in Washington DC. We’d love to make you an offer on your property. Our offers are always fair, and we don’t require inspections or appraisals. If you do choose to sell your house to our cash buyers, the transaction is direct – between you and us! Contact our cash buyers today to find out what we’ll pay for your DC house!
February 24, 2023
Pros and Cons of Using National Real Estate Websites to Sell Your House
National real estate websites like Trulia, Zillow and Redfin are popular for prospective house buyers – and for all the right reasons. The information is easily accessible and updated in real-time, and buyers are able to get all the information they need in one visit: property photos and details, sale and tax history, public facts, schools and more.
Aside from the MLS listings that a realtor might provide, it’s real estate websites that people trust first. For sellers, these websites also offer advantages. They give sellers exposure and free, no obligation listings. Redfin, for example, states that their homes sell for $1,600 more and sell 5 days faster than comparable homes listed by other brokerages.
If you’re hoping to sell your house quickly and for top dollar, you’re probably tempted to consider a national real estate website. Let’s cover the pros and cons to expect so that you can make an informed decision.
The Pros
If you’re thinking about listing your house for sale, here are some benefits you can expect when you list on a national real estate website.
- Exposure. Real estate sites rank at the top of real estate-related web searches. In other words, millions of people visit these sites every day. This means you’ll have a lot of eyes on your property.
- Low commission. Sites like Redfin provide ‘agents’ that are significantly less than paying a realtor. Average realtor commissions are between 5 and 6 percent, while online agents are around 2 and 3 percent.
- Transparent. Listing with a real estate site also offers some type of dashboard that allows you to track how many people are looking at your home, and what your agent is doing to get it sold.
The Cons
While real estate websites have their benefits, there are some drawbacks to be aware of.
- Less dedicated support. While it’s nice to save on commission, you’re also paying for what you get. Some people have reported uneven service quality and overextended agents.
- Harder to sell fixer uppers. If you have a fixer upper to sell, it’s going to be difficult on a real estate website. People using these sites are generally looking for move-in ready homes. Be prepared for low-ball offers.
- Poor communication. People often report problems with communication. That’s because much of the work is delegated to the sales team, not the agent, which can make communication more frustrating.
Have a Fixer Upper? Need to Sell Fast? Sell Your House for Cash!
If you haven’t considered selling your house for cash before, now is the time to do so! 4 Brothers Buy Houses pays cash for homes and closes in just a couple of weeks. The transaction is between you and us, so communication is fast and direct.
We charge NO commissions, NO fees and pick up most closing costs. We also don’t require an appraisal or inspection, allowing you to keep the full cash offer and move quickly. To find out if this is the best option for you, give our team of cash buyers a call today. You’ll get one fair cash offer instead of a bunch of low-ball offers!
February 15, 2023
What is the Real Estate Commission in Washington DC?
If you plan on working with a real estate agent to sell your Washington DC house, be prepared to pay realtor fees. A realtor can help stage your house, list it on the MLS and show it to prospective buyers. They can also help determine the best price for your house. But just like any other service, realtors do charge fees.
Only a small number of realtors work on salary, which means the majority work on commission. At one time, the going rate for a real estate agent was 6 percent, split between the buyer’s agent and the seller’s agent. Today, commissions typically run between 5 and 6 percent, with some room to negotiate.
Let’s learn more about what the going rate for a realtor in Washington DC is and how to sell your home with realtor fees.
Realtor Commissions in the DC Area
The average real estate commission in Washington DC is around 5 percent. Some realtors charge more and some charge less, but overall, you can expect to pay around 5 percent of the purchase price of your home. So, if you plan on selling a house that’s worth $300,000, you’ll pay $15,000 in realtor fees.
While this might seem like a lot, keep in mind that you’re getting a lot of services from your realtor. They will determine a fair price for your home, plus help you get it ready to sell. They will also be responsible for listing the house, marketing it and doing showings.
If you have a home that’s in good condition and located in a desirable area, you should make enough from the sale to pay your realtor. If you have a fixer upper in DC or are behind on your mortgage payments, you might not make enough from the sale. In this case, you may have to explore other options.
Can I Sell My DC House without a Realtor?
If you don’t care to work with a realtor, you can sell your house by owner, utilize a broker on a real estate website like Redfin or sell your house for cash. There are pros and cons to each scenario.
Again, as long as your home is an easy sell (good condition, desirable location), you can likely do a For Sale By Owner transaction. But be prepared to do all the heavy lifting, which includes listing the property, handling the showings, reviewing paperwork and negotiating.
Selling on a real estate website like Redfin can help with some of this, but you will still be paying realtor fees and getting less dedicated support. A better option, depending on your situation, may be to sell your DC house for cash.
When you sell to the cash buyers at 4 Brothers Buy Houses, you don’t have to worry about paying any commissions or fees! We will make a fair cash offer on your home, and if you accept, you get to keep it all! We require no appraisal or inspection, and we cover most closing costs.
Furthermore, because we’re buying your home as-is, you’re not responsible for making repairs or improvements. We’ll take your home in its current condition and you get to close in just two weeks! To get a free cash offer on your DC home, contact 4 Brothers Buy Houses today.
February 5, 2023
Should I Sell My Glen Burnie MD House this Spring?
Spring is synonymous with many things – fresh air, longer days, birds chirping and finally some color on the trees! Another thing that spring is known for is boosting the housing market. This time of year is considered ideal for selling a property because it’s when the largest number of buyers are actively searching for a new home.
If you have a property in Glen Burnie MD to sell, should you list it this spring? Or should you wait? Even though spring is traditionally when the housing market is most active, this year is looking a bit different with high interest rates and low inventory. Let’s explore this in more detail and the best options you have for a quick and efficient spring home sale.
What Does the Current Housing Market Look Like in Glen Burnie?
We have good news for those who have a property to sell in Glen Burnie. This suburb of Baltimore is relatively quiet and peaceful, with above-average public schools and affordable homes. People continue to move here because it’s close to the major cities but still offers a small-town feel.
With this in mind, the housing market in Glen Burnie is competitive. According to Redfin data, Glen Burnie home prices were up nearly 13.4 percent in January 2023, selling for a median price of $355,000. While these numbers are down from last year at this time, they are still strong, with houses staying on the market for around 37 days.
Benefits of Selling Your Glen Burnie Property this Spring
If you are thinking about selling your house, 4 Brothers Buy Houses can help! We’ll give you a free, no obligation cash offer so that you can make an informed decision. The benefit in selling your house to us is that we will buy your property in as-is condition – no contingencies!
Our cash buyers do not require an appraisal, inspection or repairs. You get to keep the full offer, and we usually pick up most closing costs. Selling a house for cash isn’t right for everyone, but it could be right for you if you:
- Have a fixer upper
- Are behind on your mortgage payments
- Need to move quickly
- Are going through a separation or divorce
- Have inherited a property
- Can’t afford to make the repairs your home needs
- Need fast cash
Get in touch with our cash buyers if you want an offer on your property. There is no obligation to continue – this is simply for informational purposes! Many sellers find that it’s actually cheaper to sell their homes this way instead of with a realtor. Contact us today to see if the same is true for you!
January 24, 2023
Is Spring the Best Time to Sell a House in D.C.?
Historically, spring is known as the best time to sell a house in Washington DC. The National Association of Realtors named mid-April specifically as the optimal time to sell a property. But with so many uncertainties – rising mortgage rates, high inflation, low inventory – you might not want to wait until spring to list your home for sale.
The good news is that you have options – probably more than you think! You can go ahead and list your property in the spring, especially if you need time to prepare and want to wait for the market to heat up. You can also consider an alternative option like selling your D.C. house for cash. Ultimately, there is no right or wrong decision – the goal is to sell your house quickly and for the most money.
Why is Spring Usually the Best Time to Sell a House?
Homes that are listed at the end of spring and beginning of summer tend to sell faster and for a higher price. There are a number of reasons why this is the case:
- Better weather. After being cooped up all winter, people are ready to get out and start looking at homes in the spring. Plus, if they do find a house they like, moving in the spring is better than moving in the winter.
- More money. Because there are more people looking for homes in the spring, the competition is high, and this can result in a bigger offer. Some areas in D.C. still have low inventory, so some sellers are still seeing multiple bids.
- Improved curb appeal. The winter months in D.C. aren’t exactly the prettiest. But come spring, everything is coming in – blooming flowers, leafy trees and green lawns. This makes homes stand out!
What if I Don’t Want to Wait Until Spring to Sell?
While it might look good on paper to sell your house in the late spring or early summer, this may not be in your best interests. For every month that you keep your home, you are responsible for paying the principal, interest, property taxes and utilities. You are also responsible for maintaining the home.
If you’re not in a position to do this, selling your D.C. house for cash is likely the better option. 4 Brothers Buy Houses is a home buying company that purchases properties all over Washington D.C. We always make fair offers that reflect the condition, location and size of the home. If you accept the offer, we can typically close in about two weeks.
Furthermore, our cash house buyers in D.C. require no contingencies. There are no appraisals, inspections, repairs or cleaning you’ll have to do. The transaction is simple and straightforward. If you don’t want to wait till spring to sell your house, selling for cash can be a great alternative! Contact 4 Brothers Buy Houses for your free cash offer!
January 15, 2023
How the COVID Pandemic Has Impacted the Housing Market for Baby Boomers
Downsizing to a smaller home means less upkeep, lower bills and more time to do the things you love. However, downsizing isn’t the cash grab it used to be. With higher home prices, rising mortgage rates and costly moving services, some baby boomers are choosing to upgrade their homes rather than downsize them.
Let’s learn more about how the COVID pandemic has impacted the housing market for baby boomers so that you can reassess your next chapter!
Greater need for in-home offices.
Even though baby boomers are of retirement age, many are still in the workforce. According to reports, almost half of baby boomers are still working past age 70. This generation sees working longer as the key to a secure retirement.
The good news is that many older adults are able to work from home. The pandemic pushed this trend forward, and it actually turned out to be a smart and profitable decision for many businesses. As a result, some older adults want homes that can accommodate an in-home office, preferably on the first floor.
Need for more space, not less.
Zillow research found that nearly three million young adults moved back home during the pandemic. That likely delayed downsizing plans for some older adults who suddenly had a full house again. Even though many young people are now moving out, this has changed the way people look at their homes.
Instead of downsizing, some older adults have decided to remodel their homes or buy a new home with an open floor plan and extra bedrooms. This way, the home is easier to maintain but still offers enough room for adult children to stay.
Desire for an easier commute.
With so many baby boomers in the workforce, it’s not uncommon for them to drive to work at least some of the time. But with rising gas prices, higher car prices and increasing interest rates, people are rethinking their commutes.
For instance, we’re seeing more older adults move to new homes to enjoy a shorter commute. This saves money, alleviates stress and puts more money in their pockets. It also makes it easier to work longer, something that is important to boomers.
Accommodate changing lifestyles.
Realizing that life is precious and uncertain, older adults are rethinking their idea of ‘home.’ Many are choosing to move closer to their grandchildren, while others want a space that accommodates their interests – a large yard for gardening or a library for reading, for example. This is also a good time to choose a property that is one level and easier to maintain.
As you can see, older adults are still moving, but they might not be as interested in downsizing as they once were. If you are thinking about selling the family home, contact 4 Brothers Buy Houses for a free cash offer. The cash you receive will make it easier to buy a home that is conducive to your current lifestyle.
December 20, 2022
Yes, 2023 Will Still be a Good Time to Sell Your House in Virginia
Deciding whether you should sell your home or wait always deserves careful attention. There are a number of factors that influence this decision – some are in your control and others are not. For example, people are motivated to sell their homes when they know they can get a good offer, which is driven by high demand and low inventory.
But even if the market is in favor of buyers, you may still have no choice but to sell due to a new job or family illness. In this case, you’ll want to research your options and sell your property in the most convenient and economical way, whether it’s listing with an agent, selling on your own or working with a cash buyer in Virginia.
The good news is that no matter what you are facing in 2023, it will still be a good time to sell. There are predictions for a housing crash and economic recession, but people are still upsizing, downsizing and relocating. Here are three good reasons why 2023 will be a good time to sell.
Demand Far Exceeds Supply
In October, there were over 25,000 homes available in Virginia, down 24 percent year over year. This means that there are still less homes on the market compared to other years. There are also plenty of buyers looking for homes to buy, so if you have a desirable property, you should have no trouble selling it. You may even get several bids, driving up the price!
However, if your house is not in the best condition, you could have trouble selling it. Even though there are more buyers than houses, people still prefer homes in good condition. A property that requires extensive repairs and updates will have to be sold at a deeply discounted price. In this case, you’re probably better off selling to a cash investor.
Interest Rates are Still Low
Yes, interest rates are still much higher than what we’ve seen in recent years, but they are still lower than the 7.76 percent average. Rates for a 30-year fixed mortgage are around 6 percent, and slightly less for a 15-year fixed rate. While these interest rates have pushed some people out of the housing market, they are not high enough to keep serious buyers out.
Not to mention, there’s a possibility that interest rates can continue climbing. In 1981, for example, interest rates were a whopping 16.63 percent, according to Freddie Mac data. For those who are looking to buy, today’s interest rates are still reasonable.
Appreciation is Still Growing
The first quarter of 2022 brought double-digit appreciation to home values. While the rate of appreciation is expected to slow at the end of the year and into 2023, it’s not expected to reverse, and that’s a good thing. This means that you can sell your house in Virginia for more money, and walk away with more in your pocket even after paying all your fees!
Of course, if you want to avoid paying realtor commissions, listing fees, staging costs, etc., you can sell your house for cash! There are absolutely no fees associated with this type of sale, which means you get to keep your full cash offer!
These are three great reasons why selling your house in 2023 will still be worthwhile. The market may not be as competitive as it was earlier this year, but that doesn’t mean it’s not a good time to sell. The key is choosing the best method to sell and finding the right buyer. Fortunately, you can do both with 4 Brothers Buy Houses. Request your free cash offer today!
November 15, 2022
Could Washington D.C. Be on the Brink of Another Housing Market Crash?
The housing market is looking very different today than it did a few months ago. Earlier in the spring, Washington D.C.’s housing market was ‘supercharged.’ Housing inventory was low and interest rates were competitive, hovering between 3 and 4 percent during the months of March and April. Fast forward to November, and the current interest rates in D.C. are 7.3 percent for a 30-year fixed and 6.47 percent for a 15-year fixed.
With the market changing quickly, some experts predict a housing market crash that’s worse than 2008! Could this be possible, or is this just unnecessary hype? Let’s explore the facts we have now and your options for selling if you need to sell fast in D.C.
Could We Be on the Brink of Another Housing Market Crash?
In a matter of months, the pandemic housing boom has turned into a bust. Some reports even show that home prices are falling faster than they did during the start of the 2008 financial crisis. According to an article in Seeking Alpha, here are some of the things we know today:
The number of privately-owned housing units under construction is at an all-time high of 1.7 million. However, the prices on these homes continue to decrease. Prices are falling as much as 4 percent in some areas!
With so many houses being built, experts wonder who is going to buy all of these properties at a 7.3 percent interest rate. With the current prices, these properties are already out of reach, which means they need another price cut.
Housing demand is much less than what it was, and the supply of homes is about to soar. Real-time housing prices are falling faster than in 2008.
One of the best indicators of future sales is the number of mortgage applications coming in, and even these are down 42 percent from last year.
Experts say the Feds waited too long to hike rates during the housing boom and now need to lower home prices, especially with over 1 million new properties about to hit the market. This exceeds 2006 numbers.
Knowing all of this information and looking back to the 2008 housing market crash, it’s possible that another crash is in our future. However, it’s hard to say what it will look like and how it will compare to 2008.
I Need to Sell My House in Washington D.C. What Should I Do?
If you have a property to sell in D.C., you’re probably wondering what options you have. You can always try to sell your home with a realtor and see what happens. You might get several offers, or you might get none. It all depends on where your home is located, its condition, its price and other factors.
If your property needs some TLC, you’ll either have to invest the money to fix it up or sell it as-is. With new properties coming onto the market and increasing interest rates, most buyers aren’t looking for a fixer upper. For the money they’re going to pay, they want something new and nice.
4 Brothers Buy Houses is a Washington D.C. home buying company. We offer many benefits to the home selling process, including:
We’ll buy your house as-is. Don’t worry about having to make improvements, repairs, updates, etc. We’ll take your house in the exact condition it’s in. Save this money for your new home/rental!
We’ll offer you a fair price. We want the deal to work in both our favors. That’s why we will present you with a fair cash offer that you get to keep, as there are ZERO commissions or fees.
We’ll close in two weeks. Because our buyers pay in cash, there are no banks to wait on. We can typically close in about two weeks, and we pick up most closing costs.
If you have a property to sell and you don’t want to wait for the market to change in your favor, consider selling it for cash! Get in touch with 4 Brothers Buy Houses to see what we’ll pay for your house. Selling today can help you avoid the potential crash and get more for your property!
September 25, 2022
Fall 2022 Housing Market Trends in Washington DC
Whether you’re planning to buy or sell a house in Washington DC, it’s helpful to know the trends and what you can expect from the housing market. This will help you prepare accordingly while also developing realistic expectations for the process ahead.
If you haven’t been following the trends, you might be surprised to learn that the housing market has changed dramatically since the start of the year. Below is everything you need to know about the housing market trends for Washington DC this fall and winter.
What is the Washington DC Housing Market Like Today?
According to Redfin data, Washington DC home prices have gone down 1.5 percent since last year, selling for a median price of $650K. On average, homes in the DC area are selling in about 37 days, compared to 32 days last year. Also, 710 homes were sold in August this year, compared to 895 last year.
The Washington DC housing market is still competitive. Some properties are still seeing multiple offers, and hot homes on Redfin sell for about 1 percent above the listing price and go pending in about 13 days. So, if you have a move-in ready home in a great area, you should have no problem selling your property.
Nevertheless, the housing market in DC is slowing down. As we head into the fall months, we’re already seeing prices drop and homes sitting on the market longer. Buyers have more choices, and this is giving them more leverage, too.
Are People Still Looking for Homes in DC?
Home sales have slowed, but buyers are still looking. Through the first eight months of 2022, the number of home sales fell by 17.3 percent from the same time a year ago. While this number may sound significant, keep in mind that the 2021 housing market was historically busy.
This article also points out that people are starting to look at close-in communities again, which was different from the start of the pandemic. At this time, there was more buyer interest in areas on the outskirts because people were working and attending school from home. But now that things are returning to normal, there’s an increased demand for homes in the District and closer-in suburban markets.
What’s Ahead for DC Buyers and Sellers
Buyers will be happy to know that the changing market conditions will leave them with more leverage and more options. House prices and interest rates might still be higher than usual, but buyers won’t be forced to make offers unseen. They’ll also have more time to get inspections, appraisals and even a home sale contingency.
Sellers will definitely have to be more willing to work with buyers and possibly even adjust their price expectations. They may also be waiting longer to sell their homes, especially if they need to address problems that turn up during the inspection. But, this doesn’t mean that they won’t be able to find a buyer.
Why Selling for Cash Might be Best
If you want to sell your Washington DC house fast but missed the mark, you can still walk away with a strong offer when you sell your house for cash. The best part about this opportunity is that you can sell your house in its current condition, meaning you’re not responsible for repairs, maintenance or upgrades. For a house that needs a lot of work, this is a great alternative!
To get your free cash offer from 4 Brothers Buy Houses, contact our team of cash buyers in Washington DC today.
September 1, 2022
Why Does the Maryland Housing Market Slow Down in the Fall?
The housing market in Maryland has slowed significantly over the last couple of months due to many factors, including rising house prices, increasing interest rates and low inventory. In July 2022, home prices in Maryland were up 5.4 percent compared to last year, selling for a median price of $407,800.
Currently, Maryland is a neutral market, which means it’s not a seller’s market or a buyer’s market. This is actually good news, considering that many areas are starting to see things shift toward the buyer. And, with limited inventory in the state, it’s possible that prices will go up even further.
But there’s another thing that’s slowing down the market, and that’s the fall season. Historically, autumn is when the housing market cools off. Let’s learn why this is the case and why selling your Maryland property now might be the best fit.
The Kids are Back in School
The spring and summer are popular times to buy a home because the kids are either out of school or almost done with school. Families prefer not to change schools in the middle of the year, so they start looking at homes in the spring, with the goal to close sometime in the summer. This way, they can move their family into their new home and have time to settle in before the new school year starts.
There’s Less Flex Time
Another perk to buying a MD home in the summer is that people tend to have more flexible schedules. They’re more likely to take time off in the summer for vacations and family time. And some employees are naturally off in the summers, like teachers! With more free time in their schedules, prospective buyers have an easier time making it to showings and working with a realtor.
The Weather is Not as Nice
Maryland gets cold, rainy and snowy in the fall and winter, which means it’s not an ideal time to move. Summer may be hot, but there’s a far less chance of rain or snow during this time of year. Not to mention, the spring and summer are growing seasons, when trees and flowers are at their peak. This can help buyers see the best in their potential new neighborhoods.
Harder to See the Neighborhood in Action
More people are out in the spring and summer. Neighbors are working in their yards, kids are out riding bikes and families are walking their dogs. This makes it easier for prospective buyers to meet their new neighbors and get a feel for the community. Once fall hits and school is back in session, there are far less people out and about.
Selling Your MD House in the Fall
If you missed the mark and want to sell your house before winter hits, now is a great time to do so! It’s hard to know what the market will be like in a few months, and you can get a good price for your MD property today.
4 Brothers Buy Houses will pay cash for your property. With our house buying services, you can eliminate an appraisal, inspection and home improvements. We buy properties as-is, and we take care of most closing costs. And, there are NO commissions or fees! Contact us today for your FREE cash offer!
